Co-operative bank officials misappropriate Rs 17cr

Bhubaneswar: The Odisha government has asked managing director of Odisha State Co-operative Bank (OSCB) to take disciplinary action against a former secretary and nine others of Rourkela Branch of Sundergarh District Central Co-operative Bank (DCCB) for misappropriating Rs 17.34 crore.
While Rs 7.22 crore loan was granted by one ex¬secretary of the bank, the State Cooperation Department has named nine employees of the bank for embezzling Rs 10.12 crore.
The matter came to light after special audit report of the bank from 2004-05 to 2011-12 and 01-04-2012 to 02-04-2012 revealed that Sundergarh DCCB’s former secretary Babaji Charan Prusty had sanctioned non-agricultural loans amounting to Rs 7.22 crore beyond his competency.  
It further has held responsible six employees of the bank including chief accountant RP Mishra, accountant SC Sahoo, I/C chief accountants HK Sahoo, Chudamani Singh, Santosh Kumar Pal and system manager Dharmendra Rout responsible for misappropriating the amount. 
In a letter to the Secretary, Sundergarh DCCB the State Government has mentioned that the bank’s ex-branch manger SC Rath, ex-accountant NN Nayak and one employee B Barik are directly responsible for swindling Rs 10.12 crore. 
The Cooperation Department has also asked the Auditor General of Cooperative Societies to take disciplinary action against eight auditors for concealing the matter.
In May, OSCB’s former president Jagneswar Babu was arrested by vigilance sleuths for allegedly sanctioning loans to the tune of Rs 37 crore to Bijayananda Cooperative Sugar Mills in Balangir of which he was also the president.